MIRA INFORM REPORT

Report Date :

23.12.2013

IDENTIFICATION DETAILS

Name :	PASARI SILK INDUSTRIES LIMITED (w.e.f. 05.10.2010)
Formerly Known As :	PASARI KOPLAVITCH LIMITED
Registered Office :	1 Garstin Place, 4^th Floor, Kolkata – 700001, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	03.9.2001
Com. Reg. No.:	21-093677
Capital Investment / Paid-up Capital :	Rs.34.186 Millions
CIN No.: [Company Identification No.]	U17116WB2001PLC093677
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Selling Silk Fabrics.
No. of Employees :	66 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Sick company
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject is declared as a sick company by the Board for Industrial and Financial reconstruction. Management has filed the case vide Case No. 20/2012 for rehabilitation with in the meaning of clause (0) of subsection (1) of section 3 of the sick industrial companies (Special Provisions) act, 1985. Further vide the Case No. 20/2012 the company has been declared as ‘sick’ by the BIFR via its order dated October 23, 2013 and for which the draft rehabilitation scheme is still awaited. However, business is active. Payment erms are slow and delayed. The company can be considered for business deal;ings on a fully secured trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating D (Suspended)
Rating Explanation	Default or are expected to be in default soon.
Date	November 1, 2013

Rating Agency Name	CRISIL
Rating	Sort term rating D
Rating Explanation	Default or expected to be in default on maturity.
Date	November 1, 2013

The ratings have suspended, due to non co-operation of the subject to provide and information.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Mukherjee
Designation :	Export Department
Contact No.:	91-33-22100842
Date :	20.12.2013

LOCATIONS

Registered Office :	1 Garstin Place, 4^th Floor, Kolkata – 700001, West Bengal, India
Tel. No. :	91-33-22100842 / 0843
Fax No. :	91-33-22100860
E-Mail :	pasarisilk@vsnl.netc admin@pasarisilk.com
Location :	Owned
Factory :	Phase II, Special Econimic Zone, Falta, South 24 Parganas, West Bengal, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Shyam Sundar Gupta

Designation :

Director

Address :

1 Garstin Place, Orbit 4^th Floor, Kolkata – 700001, West Bengal, India

Date of Birth/Age :

24.10.1954

Date of Appointment :

03.09.2001

DIN No. :

00248290

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17116WB2001PLC093677	PASARI SILK INDUSTRIES LIMITED	Director	03/09/2001	03/09/2001	-	Active	NO
2	U74140WB1997PTC085756	AASHNA FISCAL SERVICES PVT LTD	Director	19/05/2006	19/05/2006	14/05/2008	Active	NO
3	U18101WB2007PTC116090	SRR FASHIONS PRIVATE LIMITED	Director	25/05/2007	25/05/2007	-	Active	NO
4	U74920WB2000PTC091038	GARSTIN CARETAKER PRIVATE LIMITED	Director	28/07/2011	19/05/2011	-	Active	NO
5	U70101WB1994NPL061572	MANI TOWERS FLAT OWNERS ASSOCIATION	Director	12/07/2011	12/07/2011	-	Active	NO

Name :

Mr. Raj Kumar Gupta

Designation :

Director

Address :

1 Garstin Place, Orbit 4^th Floor, Kolkata – 700001, West Bengal, India

Date of Birth/Age :

08.08.1979

Date of Appointment :

03.09.2001

DIN No. :

00248358

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17116WB2001PLC093677	PASARI SILK INDUSTRIES LIMITED	Director	03/09/2001	03/09/2001	-	Active	NO
2	U74140WB1997PTC085756	AASHNA FISCAL SERVICES PVT LTD	Director	19/05/2006	19/05/2006	14/05/2008	Active	NO
3	U18101WB2007PTC116090	SRR FASHIONS PRIVATE LIMITED	Director	25/05/2007	25/05/2007	-	Active	NO

Name :

Mr. Rahul Gupta

Designation :

Director

Address :

1 Garstin Place, Orbit 4^th Floor, Kolkata – 700001, West Bengal, India

Date of Birth/Age :

07.09.1982

Date of Appointment :

29.06.2005

DIN No. :

00248650

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17116WB2001PLC093677	PASARI SILK INDUSTRIES LIMITED	Director	29/06/2005	29/06/2005	-	Active	NO
2	U18101WB2007PTC116090	SRR FASHIONS PRIVATE LIMITED	Director	25/05/2007	25/05/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Shyam Sundar Gupta	1125810
Raj Kumar Gupta	498800
Rahul Gupta	435515
Kiran Devi Gupta	28750
Sudhir Kumar Datta	1000
SRR Fashion (Private) Limited, India	1328750
Total	3418625

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	38.87
Directors or relatives of Directors	61.10
Other top fifty shareholders	0.03
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Selling Silk Fabrics.
Exports :
Products :	Finished Good
Countries :	· USA · Japan · Italy
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit (Depend)

PRODUCTION STATUS AS ON 31.03.2013

Electricity Units
Licensed Capacity	200 KVA
Installed Capacity	200 KVA
Production per unit	7.5
Total Production	113330.95 Mtrs

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Retailers and End Users

No. of Employees :

66 (Approximately)

Bankers :

Syndicate Bank, N. S. Road Branch, 6 Netaji Subhas Road, Kolkata – 700001, West Bengal, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term loan from bank Syndicate Bank	205.599	233.994
Funded intrest on term loan	49.983	0.000
SHORT TERM BORROWINGS
Loan Repayable on Demand
Foreign Bills Discounted from Syndicate Bank	0.682	0.826
Bank DID, Syndicate Bank [CA-950013031403]	0.030	0.008
Bank OID, Syndicate Bank [CA-9500/3031422]	0.161	0.317
Packing Credit Loan from Syndicate Bank	36.000	36.000
From Other Parties
Shyam Sunder Gupta	0.000	0.100
Total	292.455	271.245

NOTE:

LONG TERM BORROWINGS

a. Term Loan from Syndicate Bank is secured by hypothecation of Leasehold property, plant and machinery, other assets located in the SEZ unit and also personal guarantee from Directors. Amount due but not paid - lnterest Rs. 49.982 millions Principal Rs. 54.718 millions There has been default in repayment of dues during the financial year.

b. The Company has provided lnterest on Term Loan amounting to Rs 21.587 @10.5% on Term Loan which has been proposed in the Draft Rehabilitation Scheme (DRS) submitted to the bank and the same is pending for approva! from banks side.

SHORT TERM BORROWINGS

a. From Bank

Bill Discounting (FDBP) for negotiating and Discounting the export bills backed by LC order.

b. Packing Credit Loan is secured by hypothecation of Company's entire stocks of raw materials, stock in process, finished goods and also personal guarantee from Directors.

Banking Relations :	--
Auditors :
Name :	B. R. Mittal and Company Chartered Accountants
Address :	36 A, Bentinck Street, 2^nd Floor, Kolkata – 700069, West Bngal, India
Tel. No. :	91-33-22483062 / 4043
E-Mail :	brmittal@vsnl.net
PAN No. :	AACFB3312J

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3418625	Equity Shares	Rs.10/- each	Rs.34.186 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	34.186	34.186	34.186
(b) Reserves & Surplus	(85.570)	(39.964)	46.442
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	(51.384)	(5.778)	80.628
(3) Non-Current Liabilities
(a) long-term borrowings	260.726	233.994	209.846
(b) Deferred tax liabilities (Net)	0.000	0.666	0.403
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.253	1.220	1.161
Total Non-current Liabilities (3)	261.979	235.880	211.410
(4) Current Liabilities
(a) Short term borrowings	36.873	37.251	36.977
(b) Trade payables	13.019	23.762	15.643
(c) Other current liabilities	3.272	3.557	0.168
(d) Short-term provisions	5.656	3.952	1.561
Total Current Liabilities (4)	58.820	68.522	54.349
TOTAL	269.415	298.624	346.387
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	223.040	254.666	286.879
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	5.853	2.667	4.051
(e) Other Non-current assets	0.385	0.385	0.385
Total Non-Current Assets	229.278	257.718	291.315
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	24.573	21.342	26.962
(c) Trade receivables	13.511	8.784	17.812
(d) Cash and cash equivalents	1.160	1.149	0.896
(e) Short-term loans and advances	0.237	9.129	0.647
(f) Other current assets	0.656	0.502	8.755
Total Current Assets	40.137	40.906	55.072
TOTAL	269.415	298.624	346.387

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	110.517	86.532	68.781
		Other Income	0.461	0.087	0.161
		TOTAL (A)	110.978	86.619	68.942
Less	EXPENSES
		Cost of materials consumed	58.468	56.760	42.402
		Changes in inventories of finished goods, work-in-progress and stock in trade	(4.991)	0.201	(6.953)
		Employee benefit expense	11.543	13.082	11.865
		Exceptional Item	0.008	0.000	0.000
		Other expenses	33.447	26.823	30.472
		TOTAL (B)	98.475	96.866	77.786
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.503	(10.247)	(8.844)
Less	FINANCIAL EXPENSES (D)		26.792	39.312	17.537
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(14.289)	(49.559)	(26.381)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.982	36.585	42.996
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(46.271)	(86.144)	(69.377)
Less	TAX (H)		(0.665)	0.262	0.403
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(45.606)	(86.406)	(69.780)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	103.676	80.474	63.966
	TOTAL EARNINGS		103.676	80.474	63.966
	IMPORTS
		Raw Materials	48.074	51.342	48.898
	TOTAL IMPORTS		48.074	51.342	48.898
	Earnings / (Loss) Per Share (Rs.)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(41.09)	(99.75)	(101.21)
Net Profit Margin (PBT/Sales)	(%)	(41.87)	(99.55)	(100.87)
Return on Total Assets (PBT/Total Assets}	(%)	(17.17)	(28.85)	(20.03)
Return on Investment (ROI) (PBT/Networth)		0.90	14.91	(0.86)
Debt Equity Ratio (Total Debt/Networth)		(5.79)	(46.94)	3.06
Current Ratio (Current Asset/Current Liability)		0.68	0.60	1.01

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term loan from bodies corporate	5.144	0.000
Total	5.144	0.000

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10094196	30/04/2010 *	254,083,000.00	Syndicate Bank	N.S. Road Branch, 6 Netaji Subhas Road, Kolkata, West Bengal - 700001, INDIA	A92702158

* Date of charge modification

CORPORATE INFORMATION

Subject is a limited company domiciled in India and incorporated under the provision of Companies Act, 1956. The company is engaged in manufacturing and selling silk fabrics and made-ups. The company is solely an Export Oriented Unit situated in SEZ - Falta.

FIXED ASSETS

· Factory Building

· Air Conditioner

· Computer

· Electrical Fittings

· Factory Equipments

· Furniture and Fixture

· Machineries

· Motor car

· Office Equipments

· Weighing Scale

· Lab Equipment

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.24
UK Pound	1	Rs.101.81
Euro	1	Rs.84.85

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	ANK

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.